Employers nationwide are re-evaluating non-competition agreements in light of recent developments in California. According to an article in The Legal Intelligencer, California’s prohibition on non-competes is not only being enforced within the state but is reaching beyond its borders — prompting companies across the country to adjust their employment contracts.
California’s regime, grounded in California Business & Professions Code § 16600, has long held that most non-competition clauses are void. Recent legislation has extended this reach so that even out-of-state employers employing California-based workers may no longer enforce such agreements. This shift elevates the risk for multistate employers who may have assumed their non-competes remained viable if the governing law was outside California.
For employers with operations or remote workforce connections in California, it may no longer be sufficient to assume a non-compete will survive enforcement. Instead, the focus must shift to broad contract audits, policy updates and careful talent-mobility strategy—especially as workforce geography becomes more fluid.
Outside Legal Counsel LLP stands ready to assist organizations in reviewing non-compete frameworks, updating employment-contract language, and aligning protective strategies with the latest enforcement environment. Contact us today.
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